TRANSNATIONAL MANAGEMENT: Lecture 1

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TRANSNATIONAL MANAGEMENTLecture 1

• Course introduction, globalization and managerial
  implications
• 25th November 2009

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Information sources

• All relevant information is available on the
  course website!
• Please check it regularly ?
• Web EF website ? Courses ? Transnational
  management

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Some info about the lecturer
The male name MATEVŽ
One of the most typical Slovene national dishes
made out of mashed potatoes and cooked beans
most often used as a side dish to meat
The 88th (f2567) most frequent male Slovene
first name
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and some more info

• Matevž Raškovic employed at the FEUL since 2007
• Department for International Economics
• Teaching International business, International
  management, International Marketing,
  International business on regional markets
• PhD thesis Managing buyer-supplier relationships
  as a source of competitive advantage in
  transnational companies
• Main research interest International business
  and marketing, Internationalization of Slovene
  companies, Pharmaceutical marketing, Wine
  marketing, Social network analysis, Tourism
  research, Cross-cultural research

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Your expectations
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What is management?
http//www.youtube.com/watch?vTzdUiwB-Fj0
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What is then transnational management?
INT. BUSINESS
E N V I R O N M E N T
INTERNATIONAL MANAGEMENT
INTERNATIONAL MARKETING
M A C R O
FOREIGN TRADE
INTERNATIONAL FINANCE
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What is fundamentally different

• Not just WHERE this takes place (geographical
  space), but..
• it is more than planning, organizing, leading
  and controlling
• it is HOW IT TAKES PLACE!
• Because

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Sources of difference in TM

• Geography (distance)
• Culture
• Markets- widespread fragmented
• Information
• Politics governments
• Risk and finances
• Law and rules
• Technology
• People

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More differences

• Economies- varying levels of development
• Finance different systems and regulatory bodies
• Currency
• Business diverse rules and cultural influences
• Control increased difficulty controlling and
  coordinating across markets

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Dynamic changes in world markets politics

• The rise of newly emerging markets
• B.R.I.C countries
• Ex-Eastern Europe and the former Soviet Union
• EU Expansion (new members)
• Regional economic integration
• EU, NAFTA and others
• Decreased trade barriers liberalization
  integration

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More changes influences

• The Globalization question (pros/cons)
• The WTO, WB, IMF, OECD
• Technology the Internet communication
  industry
• Increased importance of Small and Medium-Sized
  Enterprises (SMEs) in international business
  born globals!

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An now the crisis
The butterfly effect a new business era?
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There is no doubt

• we live and do business in an increasingly
  globalized world!

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And the little ZARA dress you bought last week

• Fabric bought in Asia
• cut in a factory in Spain
• sown by seamstresses in Portugal
• printed in Tunisia
• and sold in New York!

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But what is globalization?
Infrastructure
Technology Development
Procurement
Human Resource Management
Profit Margin
Inbound Logistics
Outbound Logistics
Service
Operations
Marketing
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Nine strategic windows
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So what is globalization?

• Expansion and intensification of linkages and
  flows across national borders
• Capital
• Ideas
• Business models
• Products
• Services
• Materials (and other inputs)
• Information
• People
• Cultures

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World investment report 2009
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Cross-border MAs
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Top players (countries)
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Top players (companies)
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Forces of globalization

• Globalization is here and the world is turning
  into one big global market place!

http//www.youtube.com/watch?vPHmwZ96_Gosfeature
related
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We need proper people

• Business Skills marketing, management, finance,
  etc.
• Language skills
• Cultural Knowledge
• Adaptability to new situations, lifestyles and
  ideas
• Proper attitude

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Proper organizational climate

• Proactive/Reactive
• Risk taking (BUT SMART)
• People who like their firm being INTERNATIONAL
  and take that RISK and RESPONSIBILITY!